Journal of William Maclay: Chapter 11

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July 6th. — Was called on early this morning by Mr. Hanna,
of Harrisburg. A letter from Mr. Harris says my family are well. Attended at
the Hall after having paid some visits. The Post-Office bill was passed after
some debate. Gould's bill was rejected. I had occasion to be up on both these
bills. Now came the Settlement bill. Mr. Lee had spoiled my amendment, or at
least had greatly obscured it; but, if I stirred at all, I must use his motion,
and, great man as he is, there really was misspelling in it. The ground I took
was that the fifth section of the bill laid down a ratio in consequence of
which there must, in the nature of things, be creditor and debtor States. The
sixth section told us how the creditor States were to be paid, but not one word
was said as to the debtor States. Paying one was as necessary as the other.
Justice demanded it. Vide my amendment: "And those States against whom
balances shall be found shall have a portion of their State debt, which shall
have accrued as aforesaid, left charged upon them equal to such deficient
balance; and if it should so happen that the whole State debt of any particular
State shall fall short of such balance, such deficiency shall remain charged
against such State on the books of the Treasury."

I attacked the Secretary's [Hamilton's] system of supposititious
balances as not only unjust, and a total departure from acts and requisitions
of Congress, but as going to lay great taxes and increase the volume of our
debt.

Elsworth and Strong answered. King admitted every principle which I had
laid down, but wavered. Lee seconded, {318} and forsook me. The child was none
of his. I really thought I had the best of the arguments, which grew bulky and
by degrees spread over all our fields of finance; but on the question I had a
small division in favor of the motion.

The true history of the bill is that it has been fabricated by the
Secretary's people, particularly Fitzsimons, and is meant as a mere delusion or
to amuse the public, for they seriously never wish the accounts to be settled.
But a show must be kept up of giving satisfaction on this point. As to myself,
I may draw a lesson from Lee's conduct, to bring forward my own motions only. I
spoiled the amendment to obtain his support, and he saw it perish with the
indifference of a stranger.

July 7th. — Attended at the Hall. Every face bore the marks
of anxious expectation. Schuyler came to me and owned the bill for the
settlements of accounts was to the full as I had stated it yesterday, and
showed me a long amendment; said the bill should be committed. Wished me to
second him. I readily agreed to it, and now we went on the subject of debate. I
was not alone, as yesterday. I supported my old system of ascertaining the
expenses of the war; agreeing to the ratios and fixing the quotas; giving
certificates to the creditor States and leaving the State debts on the debtors,
respectively, so far as to equalize the accounts. Elsworth certainly confused
himself. He wished to equalize the accounts by credits only, taking the lowest
exertion as the basis and setting off to each State in proportion to it and
funding all over it, as the exertions of some of the States stood nearly at 0.
This, in fact, would be funding nearly the whole expenses of the war.

Butler had a third system, viz., take no notice of anything bygone, but
divide the existing debt among the States. I thought it strange to hear my
colleague declare for the last opinion. After some very long debate, the bill
was committed.

The Secretary's [Hamilton's] people got the advantage of us again. A
bill which had disappeared a long while, of the most futile nature, with regard
to relieving certain officers from what they considered as a grievance, was
reported on {319} favorably, but rejected. This same bill, or at least one
verbatim the same, had been rejected by us formerly. Some other trifling
business was done, and we adjourned.

Sundry questions were taken in the House of Representatives on the
Residence bill. The decisions hitherto have been favorable, but the question on
the bill has not yet been taken.

July 8th. — This day was slack in the Senate until the
report came in on the bill for the settlement of the accounts. As might be
expected, their amendments followed the Secretary's report, or nearly so. It
amounted to this: That the net advances of the States should be made an
aggregate, and this aggregate divided by the ratio of population which would
fix the quotas. Then the quotas, compared with their respective advances, would
determine the balances or credit, or turn out just equal. And here it was
agreed to leave the matter for the present, as the bill respected the
ascertaining the balances only, and left the payment to the creditor States and
the payment from the debtor States to the future operation of the Legislature.
All this was far short of what I wanted, and indeed the bill will turn out, as
I fear, a mere delusion. But under its present form the State debts must be
embraced in the accounts, if the commissioners do their duty; and if so, this
will operate as a reason why they should not be assumed.

I was called out by Mr. Hanna, who was just setting off home. I wrote a
hasty line by him to Charles Biddle that the votes stood this day twenty-eight
to thirty-three on the residence.

Stayed at the Hall until four o'clock, and went to dine with the
President. It was a great dinner, in the usual style, without any remarkable
occurrences. Mrs. Washington was the only woman present.

I walked from the President's with Mr. Fitzsimons part of the way to his
lodgings. He really seemed good-humored and as if he wished to be on good terms
with me. Clymer called at our lodgings in the evening, and seemed condescending
and good-humored in a remarkable degree, but all in the dumps again about the
residence; only thirty real friends to the bill in the House of
Representatives, etc.

{320}

It is time, indeed, that this business should be settled, for all our
affairs are poisoned by it.

Nothing can be plainer than the simple mode of debtor and creditor for
the settlement of the public accounts of the Union. But the State of South
Carolina is most miserably in arrears, and wishes to avoid all settlement, or
to have such a partial one as will screen her defects. She has been devoted to
New York on the subject of the residence. Therefore New York (or I should
rather write, Hamilton) labors incessantly to confuse, embarrass, and confound
all settlement. The thing can not be openly denied, but they will involve it in
so many difficulties as will either prevent it altogether, or render it useless
if it should take place.

July 9th. — Attended at the Hall at the usual time. There
was much whispering of the members — Elsworth, Strong, and Izard. We had a
bill for regulating the intercourse with the Indians, which has passed — a
vile thing which may be made the basis of much expense. Superintendents are to
be appointed, although the superintendence of the Indians in the government
northwest of the Ohio is already vested in the Governor, and so south of the
Ohio. By and by we shall have a call for their salaries. It really seems as if
we were to go on making offices until all the Cincinnati are provided for.

The Settlement bill engaged us warmly for the most of the day. The
object was to find the balances due to the creditor States and how. Ingenuity
itself is tortured to find ways and means of increasing the public demands and
passing by and rendering the State governments insignificant. I declared what I
thought plainly on the subject — that the bill was one for the settlement
but not the payment of the respective balances; that the old Confederation
dearly contemplated the payment of the balances from the delinquent States to
the creditor States; that every act of the old Government carried this on the
face of it; that, although we could not lay unequal taxes, yet the adoption of
the new Constitution did not go to the discharge of just debts due from the
States which might be hereafter found debtors, and that Congress certainly had
the power of liquidating the balances and making the demands from the debtor
States.

{321}

The bill, after a long debate, passed on the principle of a Settlement
bill only.

I find, by letters which I have received, that the public creditors are
to be the body who are to rise in judgment against me and try to expel me from
the Senate. This is only what I expected. Nor are they the only ones. The
adoption of the new Constitution raised a singular ferment in the minds of men.
Every one ill at ease in his finances; every one out at elbows in his
circumstances; every ambitious man, every one desirous of a short cut to wealth
and honors, cast their eyes on the new Constitution as the machine which could
be wrought to their purposes, either in the funds of speculation it would
afford, the offices it would create, or the jobs to be obtained under it. Not
one of these has found a patron in me. In fact, I have generally set my face
against such pretensions. As such men are generally wanting in virtue, their
displeasure — nay, their resentment — may be expected. "Why, you
want nothing neither for yourself nor friends!" said a Senator one day to
me in some surprise. It was somewhat selfish, but I could not help uttering a
wish that he could say so with truth of every one.

July 10th. — Being Saturday, the Senate did not meet, but I
went to the Hall by a kind of instinct Created by custom, somewhat like a
stage-coach which always performs its tour whether full or empty.

I met King and Langdon here. We spent an hour or two in very familiar
chat. Nothing worth noting unless it was the declaration of King that a bargain
was certainly made on the subject of the residence to obtain at least one vote
in the room of Ms [King's], as it was most likely he would vote against the
assumption if the residence went to Philadelphia. I was astonished at King's
owning this, which, in fact, amounted to this: that he had engaged his vote for
the assumption if the residence stayed in New York.

July 11th, Sunday. — This was with me a very dull day. I
read at home; wrote the usual letters to my family and other correspondents.
After dinner, walked alone out on the commons beyond the Bowery wherever I
could find any green grass or get out of the dust, which was very troublesome
on the roads.

{322}

July 12th, Monday. — Attended at the Hall at the usual time.
We received two messages from the Representatives, one of them containing the
Residence bill. We had considerable debate on the Post-Office bill. Insisted on
our amendments and appointed a committee to confer. Insisted on our amendment
to the Indian Intercourse bill, and passed the tonnage. This bill deserves a
remark.

This bill is in every respect the same as the old one, bating the
remission of some unintentional severities which had fallen on some fishermen
and coasters, which were remitted. The taking all the time and passing all the
forms of a new bill, would perhaps bear an interpretation as if we feared
running out of work.

A motion was made for taking up the Funding bill, but withdrawn. No
other serious business was gone on. The House adjourned.

A number of us gathered in a knot and got on the subject of the
assumption, the report of which had just been handed in by Mr. Carrol. It was
in favor of it. And now from every appearance Hamilton has got his number made
up. He wanted but one vote long ago. The flexible Read was bent for this
purpose some time ago and Carpel having joined to make up the defection of
King. The mine is ready to be sprung. Since I am obliged to give up Carrol's
political character, I am ready to say, "Who is the just man that doeth right
and sinneth not?"

The sum they have reported to be assumed is twenty-one million dollars.
This is most indubitably to cover the speculations that have been made in the
State debts. The assumption will immediately raise the value of State
securities and enable those people who have plunged themselves over head and
ears in those speculations to emerge from impending ruin and secure them the
wages of speculation. The report is ordered to be printed. After dismissing
this subject, we got on the prospect of an approaching war between Spain and
England. Here was a large field for conjecture, and we indulged our fancies on
the subject until near three o'clock.

Here I will note down an observation which I wonder never made an
impression on the Pennsylvanians. Every {323} State is charged with having
local views, designs, etc. Could any motive of this kind be justly chargeable
on our State in adopting the Constitution? By our imposts we laid many of the
neighboring States under contribution — part of Jersey, Delaware, part of
Virginia, and almost the whole of the Western country. It appears one fourth of
the whole impost is received at Philadelphia. This was a great sacrifice.
Query: Did our politicians ever think of this advantage?

July 13th. — I attended this day at the Hall at the usual
time, or rather sooner. General Schuyler only was before me. Our Vice-President
came next. They sat opposite me, and had a long chat on various subjects, but
nothing very interesting. Mr. Morris came at last.

The resolution for the assumption of twenty-one millions of the State
debt was taken up. This was perhaps the most disorderly day we ever had in the
Senate. Butler was irregular beyond all bearing. Mr. Morris said openly before
the Senate was formed, "I am for a six-percent fund on the whole, and, if
gentlemen will not vote for that, I will vote against the assumption." I
thought him only in sport. But he three times in Senate openly avowed the same
thing, declaring he was in judgment for the assumption, but, if gentlemen would
not vote for six per cent, he would vote against the assumption and the whole
Funding bill. His adding the Funding bill along with it in the last instance
operated as some kind of palliation. But I really was struck with astonishment
to hear him offer his vote for sale in so unreserved a manner. Izard got up and
attacked him with asperity. Mr. Morris rose in opposition. Then Izard declared
he did not mean Mr. Morris, so much did he fear the loss of his vote. But his
invective was inapplicable to anybody else. I was twice up and bore my most
pointed testimony against the assumption. It was insuring a certain debt on
uncertain principles. The certain effect was the incurring and increasing our
debt by twenty-one millions by mere conjecture.

This debt was already funded by the States, and was in train of payment.
Wily not settle and let us see how the account stands before the States are
discharged of their State debts? I alleged the funds on which these debts were
charged {324} by the States were those which these States could pay with the
greatest facility, as every State had facilities of this kind. The transferring
the debt to any general fund would lose these local advantages. It was dealing
in the dark; we had no authentic evidence of these debts. If it was meant as an
experiment how far people would bear taxation, it was a dangerous one. I had no
notion of drilling the people to a service of this kind, etc. But I can not
pretend to write all I said.

Mr. Morris has twice this day told me what great disturbances there
would be in Pennsylvania if six per cent was not carried. I considered these
things as threats thrown out against my reappointment [to the Senate]. But, be
it so; so help me God, I mean not to alter one tittle! I am firmly determined
to act without any regard to consequences of this kind. Every legislator ought
to regard himself as immortal.

July 14th. — This day the resolutions on the assumption were
taken up. I am so sick and so vexed with this angry subject that I hate to
commit anything to writing respecting it. I will, however, seal one of the
copies of it in this book as a monument of political absurdity.*

[* The Assumption Bill — Copy.

Congress of the United States — in Senate, July the 12th,
1790.

The committee appointed July the 2d, 1790, reported as follows:

Whereas, A provision for the debt of the respective States by
the United States would be greatly conducive to an orderly, economical, and
effectual arrangement of the public finances; would tend to an equal
distribution of burthens among the citizens of the several States; would
promote more general justice to the different classes of public creditors, and
would serve to give stability to public credit; and

Whereas, The said debts having been effectually contracted in
the prosecution of the late war, it is just that such provision should be
made:

Resolved, That a loan be proposed to the amount of twenty-one
millions of dollars, and that the subscriptions to the said loan be received at
the same time and places, by the same persons, and upon the same terms as in
respect to the loans which may be possessed concerning the domestic debt of the
United States. subject to the exceptions and qualifications hereafter
mentioned. And the sums which shall be subscribed to the said loan shall be
payable in the principal and interest of the certificates or notes which, prior
to the first day of January last, were issued by the respective States as
acknowledgments or evidences of debts by them respectively owing, and which
shall appear by oath or affirmation (as the case may be) to have been the
property of an individual or individuals or body politic, other than a State,
on the said first day of January last. Provided, that no greater sum shall be
received in the certificates of any State than as fellows. That is to say:

In those of New Hampshire ... 0,000
In those of Massachusetts ... 4,000,000
In those of Rhode Island and Providence Plantations ... 200,000
In those of Connecticut ... 1,600,000
In those of New York ... 1,200,000
In those of New Jersey ... 800,000
In those of Pennsylvania ... 2,200,000
In those of Delaware ... 200,000
In those of Maryland ... 800,000
In those of Virginia ... 3,200,000
In those of North Carolina ... 2,200,000
In those of South Carolina ... 4,000,000
In those of Georgia ... 300,000
... ,000,000

And provided that no such certificate shall be received which, from
the tenor thereof or from any public record, act, or document, shall appear or
can be ascertained to have been issued for any purpose other than compensations
and expenditures for service or supplies toward the prosecution of the late
war, and the defense of the United States or some part thereof during the
same.

Resolved, That the interest upon the certificates which shall
be received in payment of the sums subscribed toward the said loans shall be
computed to the last day of the year one thousand seven hundred and ninety-one
inclusively, and the interest upon the stock, which shall be created by virtue
of the said loan, shall commence or begin to accrue on the first day of the
year one thousand seven hundred and ninety-two, and shall be payable
quarter-yearly, at the same time and in like manner as the interest on the
stock to be created by virtue of the loan that they may possess in the domestic
debt of the United States.

Resolved, That if the whole sum allowed to be subscribed in the
debt or certificates of any State as aforesaid shalt not be subscribed within
the time for that purpose limited, such State shall be entitled to receive, and
shall receive from the United States, at the rate of four per cent per annum
upon so much of the said sum as shall not have been subscribed, in trust for
the non-subscribing creditors of such State, to be paid in like manner as the
interest on the stock which may be created by virtue of the said loan, and to
continue until there shall be a settlement of accounts between the United
States and the individual States, and in case a balance shall then appear in
favor of such State, until provision shall be made for the said balance.

But as certain States have respectively issued their own certificates,
in exchange for those of the United States, whereby it might happen that
interest might be twice payable on the same sums:

Resolved, That the payment of interest, whether to States or to
individuals, in respect to the debt of any State, by which such exchange shall
have been made, shall be suspended until it shall appear to the satisfaction of
the Secretary of the Treasury that certificates issued for that purpose, by
such State, have been re-exchanged or redeemed, or until those which shall not
have been exchanged or redeemed shall be surrendered to the United States. And
it is further

Resolved, That the faith of the United States be, and the same is
hereby pledged to make like provision for the payment of interest on the
account of the stock arising from subscriptions to the said loan, with the
provision which shall be made touching the loan that may be proposed in the
domestic debt of the United States; and so much of the debt of each State as
shall be subscribed to the said fund shall be charged against such State, in
account with the United States.]

{325}

It has friends enough — fourteen to twelve — so far, but I am
not without hopes of destroying it to-morrow. I am now convinced that there
must have been something in the way of the bargain, as King alleged on
Saturday. It must have been managed with Butler. Elsworth at one time this day
used the following words: "No man contemplated a final liquidation of the
accounts between the United States and the individual States as practicable or
probable." I took them down and showed them to Mr. Morris and Mr. Walker. He
observed me, and after some time got up and, in the course of speaking, said,
"A settlement was practicable, and we must have it."

{326}

He will absolutely say anything, nor can I believe that he has a
particle of principle in his composition.

Mr. Morris, Langdon, and others, moved to strike out the third section.
We of the opposition joined Elsworth and kept it in. The State of Pennsylvania
has not but about one million of existing State debt. This clause, if the vile
bill must pass, may be considered as in her favor, more especially if they
prevail and prevent a settlement of the accounts.

I saw Mr. Pettit yesterday at the levee, and, as I was advised by letter
that he was appointed agent for the settlement of the Pennsylvania accounts
with the Union, I waited on him with great joy, hoping for much information on
the subject. But what disappointment! He could tell me nothing about them, but
came here to gain information and return back again; seemed to speak rather
unfriendly of the Comptroller as to what he had done about the accounts. This
surprised me. He quitted the subject with impatience, and attacked me rather
with rudeness on the subject of the public debts. I have heard him spoken of as
smooth, artful, and insinuating.

{327}

He certainly displayed none of these qualities, and, as to the public
accounts, he seems rather as an agent for the public creditors, and talked of
the settlement as a very distant object. He teased me to tell him who were the
principal holders of certificates in Boston, Newport, New York, etc., declaring
that he wished to correspond with them, and unite with them in the common
cause. I can not help regarding him as the curse of Pennsylvania.

For some time after the war certificates were sold as low as ninepence
on the pound. John Ray, my old servant, told me that he sold one of eighty
pounds for three pounds, and could get no more. But it appears, by a.
remonstrance of the Executive Council of the Legislature of Pennsylvania,
entered on their minutes, that the market price was two shillings sixpence on
the pound at the time of passing the funding law. Yet, by the instrumentality
of this man on a weak (and in some cases interested)Legislature, six per cent
was given on the certificates, or forty-eight per cent on the real specie
value. This Pennsylvania paid for four years. As the certificates were
generally below two shillings sixpence, it is no exaggeration to say every
speculator doubled his money in four years, and still has the certificates on
which he expects fortyeight per cent with respect to the original cost. Thus
one hundred pounds specie bought eight hundred pounds in certificates (perhaps
much more). These certificates brought fortyeight pounds per annum for four
years, equaling one hundred and ninety-two pounds, and the holders of
certificates remain as clamorous as ever.

July 15th. — The business of the Senate was soon done this
day. The Vice-President took up the Funding bill without any call for it. Mr.
Morris appeared in high good humor; asked me if anybody had taken me aside to
communicate anything to me. I told him no. But it was easy to observe that
something was going on. He said there was, but did not tell me what it was, nor
did he affect to know. I saw Carrol writing a ticket with a number of names on
it, sand,* and put it by. In the mean time up rose Elsworth and moved that
{328} both the Funding bill and the resolutions for the assumption should be
referred to a committee. He was seconded soon. Lee rose; said we knew no good
could come from a commitment. Mr. Morris rose; said he was for the commitment;
that they might be made in one law, and the rate of interest fixed at six per
cent. I rose; said I knew of but two ends generally proposed by commitment
— the one was to gain information, the other to arrange principles agreed
on. The first was out of the question; the second only could be the object; but
what was the material to be arranged? A bill originated in the other House, and
resolves on the assumption which had originated in this. I knew the opinion of
many of the Representatives was opposed to our power of originating anything
relating to the subject of the public debts. Taking two so dissimilar objects
together, more especially if our powers were called in question, was the way to
lose both. Gentlemen hoped much good from this measure. I wish they might not
be disappointed; but I was not certain of anything but delay, which, in our
present circumstances, I considered as an evil, etc.

[* They used sand in those days instead of blotting-paper.]

The Vice-President, who was to appearance in the secret, seemed
impatient until I had done, and putting the question it was carried. The R
— were all the six-percent men and all the assumption men. They carried
the committee, all of their own number. This done, the Senate adjourned.

Henry came and sat beside me a good while. He told me that Carrol wrote
his ticket with the seven names (that being the number of the committee) before
any business whatever was done. This I had observed in part myself. We did not
need this demonstration to prove that the whole business was prearranged, nor
can any person be now at a loss to discover that all three subjects —
residence, assumption, and the funds equivalent to six per cent — were all
bargained and contracted for on the principle of mutual accommodation for
private interest.

The President of the United States has (in my opinion) had a great
influence in this business. The game was played by him and his adherents of
Virginia and Maryland, between New York and Philadelphia, to give one of those
places the {328} temporary residence, but the permanent residence on the
Potomac. I found a demonstration that this was the case, and that [New] York
would have accepted of file temporary residence if we did not. But I did not
then see so clearly that the abominations of the funding system and the
assumption were so intimately connected with it. Alas, that the affection
— nay, almost adoration — of the people should meet so unworthy a
return! Here are their best interests sacrificed to the vain whim of fixing
Congress and a great commercial town (so opposite to the genius of the Southern
planter) on the Potomac, and the President has become, in file hands of
Hamilton, the dishclout of every dirty speculation, as his name goes to wipe
away blame and silence all murmuring.

July 16th. — Senate had not been formed but a few minutes
when a message from the President of the United States was announced. It was
Lear, and the signature of the President to the Residence bill was the
communication.

The Pension bill came up from the House of Representatives. The
committee on the Indian bill reported that twenty thousand dollars, in addition
to seven thousand in the hands of the Secretary of War and six thousand in
Georgia, in goods, should be granted for the holding treaties with the Indians;
and all this when there does not appear a shadow of reason for holding a treaty
at all with any Indians whatever. Opposition was in vain. It was carried.

Now Mr. Morris came, raging angry; said and swore he would vote against
everything. The committee had agreed to the Secretary's third alternative for
the principal and three per cent on the interest due, and he had left them. The
report came in after some time and it was proceeded on. I whispered to Mr.
Morris, now he had got the residence, it was our province to guard the Union
and promote the strength of the Union by every means in our power, otherwise
our prize would be a blank. I told him I would move a postponement of the
business and I would wish a meeting of the delegation this evening. He
assented.

A vast deal was said on the subject of the contract and breach of
obligation. Then I rose and stated that I had no difficulty on that head; that
we stood here as legislators. {330} Judges and executive officers were bound to
observe laws and contracts; but justice was the great rule which we should
govern our conduct by. The holder of the certificate called, "Do me justice."
But the original performer of the service, who sold it for one eighth part of
the nominal value, and on whom the tax to make it good is about to fall, cries,
"Do me justice also."

Both sides of this picture ought to be viewed and their relative numbers
to each other. No guess can be made in this matter, but by comparing the number
of speculators with the number of those who had sold, and perhaps the ratio
would not be one to one hundred. it was also true there was a class of men, the
original holders, who were not embraced in the above description; but if we
east our eye over the calamities of the late war they would appear to be the
fortunate characters. All the others who touched Continental money were taxed
by it, and it finally sunk in their hands. The original holders have, if not
the whole value, at least something to show, etc. I hoped for the progress of
the public business, and that a short postponement would perhaps bring us
nearer together and moved for to-morrow; but it was not carried.

The report was pushed with violence and all carried, twenty members
rising for it, four only sat, two going out. The Vice-President said twenty
for, four against. When they came to the part for ingrafting the assumption
resolves on the bill, Mr. Lee, with what assistance I gave him, retarded the
business a little. When I spoke I endeavored to narrow the ground a little, and
spoke solely to the question of combining the assumption with the Funding bill.
The Funding bill was to provide for the domestic debt which floated at large,
and was at this time in no train of payment.

The propriety of paying the foreign and domestic debt was admitted by
every person. It was really the business which brought us together. But here we
must not pass it, unless we tack it to another, which we considered as a
political absurdity. This was contradicting the spirit of free legislation.
Every subject ought to hang on its own merits. It was offering violence to our
understandings. I said a good deal on the subject, and could not restrain
myself from going {331} into the merits of the assumption. But I might as well
have poured out speech on senseless stocks or stones. It was carried against
us, fifteen to eleven. A committee was immediately appointed to make the
arrangements. We adjourned.

I came down-stairs, and all the speculators, both of the Representatives
and city, were about the iron rails. Ames and Sedgwick were conspicuous among
them. The Secretary [Hamilton] and his group of speculators are at last, in a
degree, triumphant. His gladiators, with the influence that has arisen from six
dollars per day,* have wasted us months in this place. But I can not see that I
can do any further good here, and I think I had better go home. Everything,
even to the naming of a committee, is prearranged by Hamilton and his group of
speculators. I can not even find a single member to condole in sincerity with
me over the political calamities of my country. Let me deliver myself from the
society of such men, for I verily believe the sun never shone on a more
abandoned composition of political characters.

[* The pay of Congressmen and Senators.]

July 17th. — Having some leisure this morning, I called on
Dr. Williamson and told him my intention of going home. He got into a long tale
of his settling his children in Philadelphia and taking a more Northern
position for his family than North Carolina, etc. By the way, I would only
remark he has one child only born, but he has begotten another, as he says. But
no gray-headed man ever was fuller of future arrangements for a numerous
progeny.

He went into the Hall and everybody soon had it that I was going home,
etc. I went from here and called on Fitzsimons and Clymer; told them I wished
to go home, but had no objection to take the sense of the delegation on the
measure. Fitzsimons said nothing, but looked Go to the devil, as I
thought. Clymer spoke most pointedly against my going; said we would lose nine
votes south of Virginia on a postponement bill which was going to be brought
forward. By the by, we never had but seven from that quarter. I told him the
delegation were to dine together to-morrow; if it was their opinion that I
should stay, I would do so.

{332} Attended at the Hall. Little was done, and we sat waiting an
hour for the committee to report the bill with amendments. It was done. An
attempt was made to pass it immediately by a third reading down to the House of
Representatives. It was moved that it should be printed. This was opposed. The
Vice-President gave the history of both the bill and the resolutions. With
respect to order, he made this out to be the third reading; and of course the
question would be, the sending of it to the Representatives.

It was now proposed, as an expedient, that the Secretary [of the Senate]
should read the bill from the desk for information of the members. This
obtained, and now behold, to a great many innovations and amendments a whole
new clause was added! There was something of unfairness in this. It was,
however, ordered to be printed for Monday.

When I came down-stairs, Mr. Clymer came to where I stood with General
Irwin. We talked over the general belief that the assumption was forced on us
to favor the views of speculation. Mr. Clymer mentioned one contract on which
about eight shillings in the pound had been cleared on eighty thousand pounds.
General Irwin seemed to scruple eight shillings in the pound! Mr. Clymer said
he was not so sure of the rate cleared, but the sum speculated on was eighty
thousand pounds. Much of this business was done in the 'Change alleyway.
Constable, however, is known in the beginning of the session to have cleared
thirty-five thousand dollars on a contract for seventy thousand dollars. The
whole town almost has been busy at it; and, of course, all engaged in
influencing the measures of Congress. Nor have the members [of Congress]
themselves kept their hands clean from this dirty work; from Wadsworth, with
his boat-load of money, down to the daily six dollars, have they generally been
at it. The unexampled success has obliterated every mark of reproach, and from
henceforth we may consider speculation as a congressional employment. Nay, all
the abominations of the South Sea bubble are outdone in this vile business. In
wrath, I wish the same fate may attend the projectors of both!

July 18th, Sunday. — This day the [Pennsylvanian] delegation
dined at Brandon's. Mr. Morris stated to the Representatives {333} the train of
business was in the Senate. Mentioned the importance of completing the Funding
law, particularly to us who now had the residence of Congress before us; that
the rising of Congress without funding might go to shake and injure the
Government itself, etc. We had much talk, but nothing was concluded or any
agreement entered into. Mr. Fitzsimons averred, in the most unequivocal manner,
the grand object of the assumption to be the collecting all the resources of
the United States into one treasury. Speaking of the State of Pennsylvania,
he avowed she would be a debtor State to a large amount on the settlement of
the accounts, and the next moment said she would draw interest on three million
dollars annually. It is not easy to reconcile his assertions on this subject. A
great deal of loose talk passed among us. As I had the delegation together, I
mentioned my intention of going home, and desired to know if any of them had
any objection. The discourse soon took a ludicrous turn; but no objection was
made, and I believe I will set off to-morrow afternoon.

July l9th. — Have made up my mind on the subject of going
home. I can not serve my country anything by my staying here longer. I will
certainly feel ashamed to meet the face of any Pennsylvanian who shall put to
me the question, "What have you done for the public good?" I can answer with
truth, "I have tried the best in my power."

Settled with the Speaker. He would have me pay nothing for any liquors,
but said his boy had cost him fifty dollars, which he desired me to pay one
half of. I agreed. He had about forty dollars of my money in his hands. I owe
him four shillings and sixpence, Pennsylvania. I well recollect the service of
the boy was mentioned, or at least all the services which I wanted in that way
when I settled for my boarding at four dollars per week. I have drunk,
occasionally, some of his wine — he said, not amounting to more than a
bottle or two. I am convinced it would not amount to gallons. But I most
cheerfully agreed to pay what he proposed.

I attended the Hall at the usual time. And now the material business of
the day, the Consolidated Funding bill and assumption, were taken up. Mr.
Morris showed a vindictive {334} and ireful disposition from the very start,
and declared he would have the yeas and nays on every question. This, in fact,
is declaring war against me only, as it is me only whom they can effect in
Pennsylvania. I know they mean to slay me with the sword of the public
creditors. He was as good as his word, and moved every point to increase the
demand against the public, and uniformly called the yeas and nays. All the
motions were made for augmentations by him, Schuyler, and King, vide the
minutes for the yeas and nays.

When he moved that six per cent should be paid on the back interest, as
there were but four of them for it, and enough did not rise for the yeas and
nays, I told him I was sorry to see him in distress, and jumped up. If I can
turn these yeas and nays against him, the act will be a righteous one.

In the language and calculations of the Treasury, the third alternative
is actually six per cent, without taking in the advantage of the quarterly over
annual payments, grounded on the irredeemable quality of the debt. But I really
question if we shall ever see that Change-Alley doctrine established here,
which makes debt valuable in proportion to that qualification. It never can
happen without a gradual fall of interest, which, in this country, may be
rather considered as improbable.

Before Congress met I walked awhile across the [Senate] chamber with Mr.
Lee. He lamented equally with me the baneful effects of the funding disease.
[No nation ever has adopted it without having either actually suffered
shipwreck or being on a voyage that must inevitably end in it. The separation
from Great Britain seemed to assign us to a long run of political existence;
but the management of the Secretary [Hamilton] will soon overwhelm us with
political rule. Schuyler assigned a new kind of reason this day for taxation.
Three millions and a half of dollars annually would be only one dollar per head
on the average. It was nothing, etc. It is true it is not a heavy tax, but it
ought not to be imposed without necessity.

This wretch is emaciated in person, slovenly in dress, and rather
awkward in address. No Jew ever had a more cent-per-cent aspect. He seems the
prototype of covetousness. {335} Nor is it possible to assign to his appearance
any passion, property, or affection but the love of money and the concomitant
character of a miser.

I can not help noting something which may be void of design. Yesterday
two letters were shown at dinner: one by Mr. Morris to the Governor and Council
[of Pennsylvania], another by Clymer to the mayor and corporation [of
Philadelphia]. It was agreed that the Senators should sign the one to the
Governor and Council, and the Speaker, in behalf of the delegation, should sign
the one to the corporation. I was much pleased with this arrangement, for there
was a clause in Clymer's letter of advice to erect a new building for Congress,
for the giving the State-House to Congress would furnish a reason for removing
the scat of Government elsewhere. This day in Senate, Mr. Morris produced this
last letter to me, desiring me to sign it. I declined it, telling him the
Speaker was to sign that letter. I could not help concluding there was design
in this business.

There was a dinner this day which I had no notice of, and never thought
of such a thing. In the evening Mr. Rees, clerk to Mr. Morris, called on me
with the letter to the Government. This I readily signed; but here comes the
Speaker with the other letter for me to sign. All this does not look like
candor. I told the Speaker my objections. There is a subject in that letter
which I never have touched. I will not touch it now. I have already written
fully to the mayor on the subject.

July 20th. — We went this day at the funding system and
pursued it with nearly the same temper that we did yesterday. Mr. Morris had
often declared himself that he would be for an assumption equal to the
representation, and had calculated a schedule for the purpose; but, all I could
say to him, he would not gratify me in moving it. I knew there was no chance of
carrying it. But he leveled his whole force against the nineteenth section,
which, in fact, is the only favorable one to our State, for our existing State
debt can not be much more than one million. I will refer to the minutes for the
proceedings of the day. Mr. Morris having often threatened that he would vote
against the bill, at last made this remarkable {336} speech: "Half a loaf is
better than no bread. I will consent to the bill on behalf of the public
creditors, for whom I am interested" (I looked up at him, and he added), "as
well as for the rest of the Union." This last shed some palliation over his
expressions.

I contended that the speculators generally had dealt on the face of the
certificates; or, if they had dealt on the amount, it was always at an abated
rate — clear proof they never expected the back interest to be funded. By
the bill, every hundred of principal draws four annually, and as the back
interest is about on the average equal to half the principal (at least it is so
by the Secretary's [Hamilton's] report), this, at three per cent, adds one and
a half more — equal to five and one half per cent per annum for ten years;
and then the other third (or what is equal to it in 'Change-Alley calculation)
comes at six per cent, which, added, gives about seven and a half per cent on
the face of the original certificate.

I have turned the leaf to note that I may consider myself as now having
passed the Rubicon with the Philadelphians. I saw Clymer through the window of
the Senate chamber. Morris was sent for and went out. He came in with the same
letter which I had refused to sign yesterday, and asked me to sign it. I
refused, and told him plainly it touched a subject which I never had touched,
nor would now. He said no more.

Mr. Morris told me this day I must allow myself to get the lands of
which he had spoken to me. I told him all on my part was ready; only put the
warrants into my hands. I, however, added, we have ruined our land-office by
the assumption. The State certificates were the materials to buy the lands
with. The offices will now be shut, for neither State money nor specie can be
got or spared for it. He was silent, and I really thought he looked as if he
feared that his conduct would be turned against him in the public eye.

After dinner this day I read a letter to the Speaker from John
Montgomery, of Carlisle, not much in favor of Mr. Morris. He then gave me the
following intelligence: That Fitzsimons and Mr. Morris' adherents, fearful that
he could not be carried by a popular election, were determined to {337} change
the mode to electors. But all the difficulty was to know how Wilson could save
his credit in convention and carry his party over with him after what had
already happened, this being one of the pillars on which his late popularity
was supported. It is easy to see the reason of all this. The mode of electors
admits of more cabal, intrigue, etc.

July 21st. — King's motion of yesterday for postponement and
sundry other matters which I had observed made me fearful that some storm was
gathering. I called on Mr. Morris and expressed my apprehension and proposed to
him that if any unexpected manoeuvre should display itself we should, with the
utmost coolness, call for a concurrence of the resolution for the adjournment
on the 27th.

Attended at the Hall on the affair of Donald Campbell; the most impudent
and ill-founded set of claims ever I was witness to. The first business in the
Senate was the new bill of ways and means. Committed.

A message, with a bill, respecting consuls and vice-consuls.

The bill for the military grants of lauds to the Virginia officers.
Committed.

The Senate was now full, and the Funding bill was taken up for the last
time. I made a despairing effort. Having almost uniformly opposed the measures
of Congress during the present session, some general declaration of my
principles or motives may be necessary to prevent any suspicion of a
disposition inimical to the Government itself.

First, then, I am totally opposed to the practice of funding, upon
republican as well as economical principles. I deny the power as well as the
justice of the present generation charging debts, more especially irredeemable
ones, upon posterity; and I am convinced that they will one day negative the
legacy. I will suppose (suppositions are common in this House) that not one
member of Congress has been influenced by any personal motive whatever in
arranging the American funding system, which now spins on the doubtful point of
pass or not pass; and, as it falls, may turn up happiness or misery for
centuries to come. No; I will take gentlemen at their word, and believe that it
is the glare of British grandeur, supposed to follow from her funds, that has
influenced their conduct, and {338} that their intentions are pure, wishing to
render America great and happy by a similar system. Tiffs will lead to an
inquiry into the actual state of Britain; and here, I trust, we shall find all
is not gold that glitters.

It is, if I mistake not, about a century since the commencement of the
English funds, or, in other words, since that nation began to mortgage the
industry of posterity to gratify the ambition and avarice of the then
Government. Since that period wars have been almost continual. The pretexts
have been ridiculous — balances of power, balance of trade, honor of the
flag, sovereignty at sea, etc., but the real object was to fill the Treasury,
to furnish opportunity for royal peculation, jobs and contracts for needy
courtiers, to increase the power of the crown by the multiplication of revenue
and military appointments and the servility of the funds, for every stockholder
is, of course, a courtier. The effect of these wars has been the commotion of
almost the whole world; the loss of millions of lives; and the English nation
stands at this day charged with a debt of about two hundred and fifty millions
sterling, the annual interest of which and charges of collecting in that
country is above eleven millions annually, and would be above fifteen in
this.

It has been said that this is nothing in a national point of view, as
the nation owes it to individuals among themselves. This is true only in part,
as foreigners draw great sums. Yet it is believed that near half a million of
the inhabitants of Great Britain, including army, navy, revenue, and
stockholders, are supported from the Treasury. The whole of them, be the number
what it may, must be considered as unproductive drones, who are ever ready to
support the administration, be it ever so oppressive to their
fellow-citizens.

There is another calculation said to be more exact, viz., that near a
million of paupers, reduced by exorbitant taxes below the power of
housekeeping, are dependent on national charity and poor-rates. Great cry has
been made about Mr. Pitt as the political savior of his country — that he
has paid part, and will finally discharge the whole, of the national debt. This
is a vile deception. By some management between him and the stock-jobbers, as
he buys they raise the price of the {339} remaining stock, the aggregate value
of which is now greater, at the market price, than when he began to purchase,
so that the nation, instead of gaining, is a loser to the amount of the new
duties. It is not likely that the trading of Government in stock or
certificates ever will have a different effect.

There is another part of his conduct for which I am ready to give him
proper credit. He seems by his sham armaments, to have hit on an expedient to
plunder the nation without bloodshed. Let him enjoy this praise in common with
other English robbers, who, unlike those of other nations, seldom accompany
their depredations with murder. It is in vain to expect the payment of the
British debt in any other way than by a national bankruptcy and revolution. Is
this the precipice to which we would reduce the rising nation of North America?
It may be said none of us will live to see it. Let us at least guard our
memories from the approach of such misconduct.

It may be here asked, What, then, is to be done? Just what the public
expectation called for. The Western lands have been considered from the
beginning of the late contest as the fund for discharging the expenses of the
war. The old Congress made laudable advances in this way. The present session
has not passed without applications on that subject as well from companies
among ourselves as persons from Europe. We have now a revenue far exceeding the
limit, five per cent, which the desideratum of the old Congress and the want of
which occasioned the formation of our present Constitution, and fully
sufficient to discharge a reasonable interest, proportionate price of the
public debt until the whole is extinguished by the Western sales. Thus no one
will sustain loss. Substantial justice will be done, and the public expectation
will be fully satisfied. But to bind down the public by an irredeemable debt
with such sources of payment in our power, is equally absurd as shackling the
hands and feet with fetters rather than walking at liberty.

The friends of the bill paid no attention whatever to me, and were but
too successful in engaging the attention of others by nods, whispers, engaging
in conversation, etc. Morris, Dalton, and some others went out and stayed for
an hour. {340} They carried the bill against us — fourteen to twelve. It
is in vain to dissemble the chagrin which I have felt on this occasion.

We had a resolution relating to Howell's committee. I am of the
committee. Report of joint committee on Settlement bill read for information,
but could not be acted on, as the bill is in the power of the Lower House. I
find I need be under no uneasiness about the Residence bill.

July 22d. — Attended at the Hall this day, as much to take
the wrinkles out of my face, which my yesterday's disappointment had placed on
it, as for anything else. It is in vain to think of changing a vote anyway; a
majority are sold, and Hamilton has bought them. I can be of no further use,
and will absolutely leave them. It is certainly a defect in my political
character that I can not help embarking my passions and considering the
interest of the public as my own. It was so while I was at the bar, in respect
of my clients, when I thought their cause just. Well, be it so. It has its
inconvenience, and hurts my health, but I declare I never will endeavor to
amend it.

Attended all the committees on which I was, and gave my opinion as to
the reports, etc. In Senate the Collection bill was reported. Almost an entire
new system, or the old one so renovated as to make a volume of new work for
Congress. I listened an hour to the reading of it. Rose, bade a silent and
lasting farewell to the Hall, and went to my lodgings for the purpose of
packing.

And now, at last, we have taken leave of New York. It is natural to look
at the prospect before me. The citizens of Philadelphia (such is the strange
infatuation of self-love) believe that ten years is eternity to them with
respect to the residence, and that Congress will in that time be so enamored of
them as never to leave them; and all this with the recent example of New York
before their eyes, whose allurements are more than ten to two compared with
Philadelphia. To tell the truth, I know no such unsocial city as Philadelphia.
The gloomy severity of the Quakers has proscribed all fashionable dress and
amusement. Denying themselves these enjoyments, they, as much as in them lies,
endeavor to deprive others of {340} them also; while at the same time there are
not in the world more scornful or insolent characters than the wealthy among
them. Witness the Wartons, Pembertons, etc. No, these feeble expectations will
fail. Go they [Congress] must.

Nay, taking another point of view. Political necessity urges them and a
disruption of the Union would be the consequence of a refusal. There is,
however, a further and more latent danger which attends their going. Fixed, as
Congress will be, among men of other minds on the Potomac, a new influence
will, in all probability, take place, and the men of New England, who have
hitherto been held in check by the patronage and loaves and fishes of the
President, combined with a firm expectation that his resignation (which is
expected) will throw all the power into their hands, may become refractory and
endeavor to unhinge the Government. For my knowledge of the Eastern character
warrants me in drawing this conclusion, that they will cabal against and
endeavor to subvert any government which they have not the management of.

The effect must be sensibly felt in Philadelphia, should a great
commercial town arise on the Potomac. She now supplies all the over-hill
country, and even the frontiers of Virginia and other Southern States with
importations. This must cease; nor need she expect a single article of country
produce in return from the west side of Susquehanna.

It is true that the genius of Virginia and Maryland is rather averse to
exclusive commerce. The Southern planter is situated on his extensive domain,
surrounded with his slaves and dependents, feels diminution and loses his
consequence by being jumbled among brokers and factors. And yet we have seen
what Baltimore has become in a few years from the small beginnings of a few
Pennsylvanians at first, and afterward by the accession of other strangers, for
wherever the carcass of commerce is thither will the eagles of traffic be
gathered. For my own part, I would rather wish that the residence of Congress
should not be subject to commercial influence.

Too much has that influence, conducted by the interest of New England,
whose naval connections throw them into that scale, governed — nay,
tyrannized — in the councils of the Union. {342} My consolation for going
to the Potomac is, that it may give a preponderance to the agricultural
interest. Dire, indeed, will be the contest, but I hope it will prevail. I can
not, however, help concluding that all these things would have been better on
the Susquehanna. But, query, is not this selfish, too? Ay, but it may,
nevertheless, be just.